BILL NUMBER: AB 2778	CHAPTERED  09/20/00

	CHAPTER   548
	FILED WITH SECRETARY OF STATE   SEPTEMBER 20, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 18, 2000
	PASSED THE ASSEMBLY   AUGUST 29, 2000
	PASSED THE SENATE   AUGUST 28, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN SENATE   JUNE 22, 2000
	AMENDED IN ASSEMBLY   MAY 3, 2000
	AMENDED IN ASSEMBLY   APRIL 10, 2000

INTRODUCED BY   Assembly Member Jackson

                        FEBRUARY 25, 2000

   An act to add Sections 8290, 8290.1, and 8290.2 to the Education
Code, relating to child care facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2778, Jackson.  Child care facilities.
   Existing law creates the State Child Care Capital Outlay Fund that
is administered by the State Allocation Board.  The board may
authorize the expenditure of any moneys in the fund for capital
outlay projects, including the lease of relocatable facilities.
Existing law establishes the Child Care and Development Facilities
Loan Guaranty Fund for the purpose of guaranteeing private sector
loans for the purchase, development, construction, expansion, or
improvement of licensed child care and development facilities and for
the purpose of administering the guarantees of these loans.
Existing law establishes the Child Care and Development Facilities
Direct Loan Fund for the purpose of making subordinated loans
directly or through a public or private entity approved by the State
Department of Education for the purchase, development, construction,
expansion, or improvement of licensed child care and development
facilities and for the purpose of administering these loans.
   This bill would require the Superintendent of Public Instruction
to contract with a nonprofit organization that has staff with
expertise in financing and capital expansion, are knowledgeable about
the child care field, and have the ability to develop and implement
a plan to increase the availability of financing to renovate, expand,
and construct child day care facilities.  The nonprofit organization
would serve as a financial intermediary to perform certain functions
relating to the development of child care facilities.  The
intermediary would be required to report to the superintendent by
August 31, 2001.  The superintendent would be required to submit the
report and any comments or recommendations by the State Department of
Education to the policy and fiscal committees of the Legislature and
to the Governor by September 30, 2001.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 8290 is added to the Education Code, to read:
   8290.  The Legislature finds and declares the following:
   (a) There is a serious shortage of quality child day care
facilities throughout the state.
   (b) It is in the interest of the state's children and families,
and the state's economic growth, to encourage the expansion of
existing child day care facilities by assisting communities and
interested government and private entities to finance child day care
facilities.
   (c) In addition to regional resource centers described in
Provision 7(d) of Item 6110-196-0001 of the Budget Act of 1999, which
focus on developing child care capacity in underserved areas of the
state, there is a need to access capital for facilities on a
systematic basis, especially to use limited public sector funds to
leverage a greater private sector role in financing child day care
facilities.  The Legislature finds and declares that a financial
intermediary could fill this role and support the regional resource
centers and other local entities that work with potential providers
by functioning as a centralized repository of training, best
practices, and expertise on facilities financing.
  SEC. 2.  Section 8290.1 is added to the Education Code, to read:
   8290.1.  (a) The Superintendent of Public Instruction shall
contract with a nonprofit organization to serve as a financial
intermediary.  The nonprofit organization shall have staff who have
expertise in financing and capital expansion, are knowledgeable about
the child care field, and have the ability to develop and implement
a plan to increase the availability of financing to renovate, expand,
and construct child day care facilities, both in day care centers
and family day care homes.
   (b) The financial intermediary selected by the Superintendent of
Public Instruction shall undertake activities designed to increase
funds available from the private and public sectors for the financing
of child day care facilities.  These activities shall include, but
are not limited to, all of the following:
   (1) Soliciting capital grants and program-related investments from
foundations and corporations.
   (2) Building partnerships with foundations and corporations.
   (3) Developing lending commitments, linked deposits, and other
financing programs with conventional financial institutions.
   (4) Coordinating private sources of capital with existing public
sector sources of financing for child day care facilities, including,
but not limited to, the Department of Housing and Community
Development and the California Infrastructure and Economic
Development Bank.
   (5) Coordinating financing efforts with the technical assistance
provided by the regional resource centers described in Provision 7(d)
of Item 6110-196-0001 of the Budget Act of 1999, and other local
entities that work with potential providers.
   (c) This section shall only be implemented to the extent that
funds are appropriated for this purpose in the annual Budget Act.
  SEC. 3.  Section 8290.2 is added to the Education Code, to read:
   8290.2.  (a) Pursuant to funding made available in subdivision (d)
of Provision 7 of Item 6110-196-001 of the Budget Act of 2000, the
Superintendent of Public Instruction shall contract for a financial
intermediary, pursuant to Section 8290.1, by January 1, 2001.
   (b) The financial intermediary, during its first six months of
operation, shall do all of the following:
   (1) Create and publicize an 800 technical assistance telephone
service number.
   (2) Provide financial development training for agencies at the
local level including, but not limited to, Regional Resource Centers,
Resource and Referral Agencies, and local child care planning
councils that are assisting existing and potential providers
renovate, expand, build or purchase facilities.
   (3) Determine the financing barriers and impediments to the
development of child care facilities, especially in underserved areas
of the state.
   (4) Identify funding sources that may be leveraged by the state,
and partnerships with the philanthropic and corporate sectors that
may be established, with the goal of increasing funding available for
child care facilities for California's CalWORKs and low-income
families.
   (c) The financial intermediary shall prepare a report with
recommendations on the above for the Superintendent of Public
Instruction by August 31, 2001.  The Superintendent of Public
Instruction shall submit the report, along with any State Department
of Education comments or recommendations to the policy and fiscal
committees of the Legislature and to the Governor by September 30,
2001.
